1. Investment summary
2. Stock market and corporate governance
Privatization targets trade more actively
DTEK is likely to drive the market
Political loggerheads
Corporate conflicts wind down
Dividend policies: No changes
3. Payment collection, grid losses problems no more
We stop discriminating against poor-performing Oblenergos
Grid losses
Payment collection
Cash flow distribution
4. Tariff policy: Regulated profits are growing
CapEx growth/profit increase link
EBITDA forecasts for 2008
Tariff reform: lots of uncertainties
5. 1Q08 Financial analysis
2.5x bottom line surge in 1Q08
1Q08 margins touch historical maximum
Profitability: non-industrial Oblenergos have an edge
Debt issue
Adjustments of debt
6. Valuation
Valuation methods
EV/Sales and EV/Electricity
EV/EBITDA
EV/RAB and P/B
EV/Transformer capacity
Target price estimation
Top picks selection
7. Appendix: Company profiles
7.1 Cherkasyoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.2 Chernihivoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.3 Chernivtsioblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.4 Dniprooblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.5 Donetskoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.6 Energougol
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.7 Kharkivoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.8 Khersonoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.9 Khmelnitskoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.10 Kirovohradoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.11 Krymenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.12 Lvivoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.13 Mykolaivoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.14 Odessaoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.15 Poltavaoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.16 Prykarpatoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.17 Sevastopolenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.18 Sumyoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.19 Ternopiloblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.20 Vinnitsyaoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.21 Volynoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.22 Zakarpatoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.23 Zaporizhyaoblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
7.24 Zhytomyroblenergo
BUSINESS OVERVIEW
INVESTMENT CASE
SHARE PRICE PERFORMANCE - chart
MONTHLY TRADING VOLUMES - chart
MARKET INFORMATION - table
STOCK OWNERSHIP - table
MARKET MULTIPLES - table
KEY RATIOS - table
Electricity data, TWh - chart
Area of operation - chart
8. Analyst certification
9. Target Price History
10. Investment ratings